What were the restaurant labor costs for Checkers for the year ended December 30, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
| Successor | Predecessor | |||||||
|---|---|---|---|---|---|---|---|---|
| Year Ended December 30, 2024 | Period from June 17, 2023 through January 1, 2024 | Period from January 3, 2023 through June 16, 2023 | ||||||
| Revenues | ||||||||
| Restaurant sales | $ | 255,474 | $ | 141,217 | $ | 130,191 | ||
| Franchise and retail royalty revenue | 35,389 | 18,608 | 15,385 | |||||
| Franchise fees and other income | 9,518 | 5,317 | 4,061 | |||||
| Total revenues | 300,381 | 165,142 | 149,637 | |||||
| Costs and expenses | ||||||||
| Restaurant food and paper costs | 81,660 | 45,102 | 41,194 | |||||
| Restaurant labor costs | 79,230 | 44,446 | 38,348 | |||||
| Restaurant occupancy costs | 22,378 | 11,778 | 11,145 | |||||
| Restaurant depreciation | 5,871 | 2,524 | 7,529 | |||||
| Other restaurant operating expenses | 34,053 | 20,357 | 17,423 | |||||
| General and administrative expenses | 39,215 | 19,435 | 36,471 | |||||
| Franchise support and service expenses | 5,226 | 3,634 | 1,696 | |||||
| Advertising expense | 14,397 | 8,077 | 6,810 | |||||
| Other depreciation and amortization | 3,441 | 2,093 | 900 | |||||
| Restaurant retirement costs | 139 | 300 | 596 | |||||
| Impairment of long-lived assets | 2,384 | 623 | 66,633 | |||||
| Net loss on disposal of fixed assets | 64 | 670 | 839 | |||||
| Total costs and expenses | 288,058 | 159,039 | 229,584 | |||||
| Operating income (loss) | 12,323 | 6,103 | (79,947) | |||||
| Other income (expense) | ||||||||
| Interest expense | (15,789) | (8,134) | (18,326) | |||||
| Other income (expense) | 3 | 1 | (375) | |||||
| Total other (expense) income | (15,786) | (8,133) | (18,701) | |||||
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the restaurant labor costs for the year ended December 30, 2024, were $79,230. This figure represents the expenses Checkers incurred for employee wages, salaries, and related costs at its company-operated restaurants during that period.
For a prospective franchisee, understanding restaurant labor costs is crucial because it is a significant component of the overall operating expenses. Efficient labor management, including scheduling, training, and employee retention, can directly impact profitability. Franchisees need to carefully consider local labor market conditions, minimum wage laws, and the availability of qualified staff when projecting their potential earnings.
The FDD also presents labor costs for different periods due to a Recapitalization Agreement. Specifically, the labor costs are broken down for the period from June 17, 2023, through January 1, 2024 ($44,446) and the period from January 3, 2023, through June 16, 2023 ($38,348). This detailed breakdown allows for a more granular analysis of how labor costs have varied over time, potentially due to seasonal factors or operational changes. Franchisees should analyze these trends to better anticipate and manage their own labor expenses.
It is important to note that these figures reflect the labor costs at company-operated restaurants and may not directly translate to franchised locations. Factors such as local wage rates, staffing models, and operational efficiencies can vary significantly between company-operated and franchised restaurants. Therefore, prospective franchisees should conduct their own due diligence, including reviewing the financial performance of existing franchises and consulting with current franchisees, to develop realistic projections for their own labor costs.